Morning Commentary: Investment-grade secondary market quiet; Dow Chemical, Wells Fargo firm

By Cristal Cody

Tupelo, Miss., Sept. 11 – High-grade secondary trading was quiet with new issues slightly better over the morning, according to market sources on Thursday.

The Markit CDX North American Investment Grade series 22 index ended 1 basis point tighter at a spread of 58 bps on Wednesday.

In the secondary market, Dow Chemical Co.’s 3.5% senior notes due 2024 traded 2 bps tighter from where the notes priced on Tuesday, a source said.

Wells Fargo & Co.’s 3.3% senior notes due 2024 that priced a week ago firmed 2 bps, according to a market source.

Dow Chemical firms

Dow Chemical’s 3.5% notes due 2024 (Baa2/BBB/BBB) were quoted early Thursday at 113 bps offered, better than where the notes priced on Tuesday, a market source said.

Dow Chemical sold $900 million of the 10-year notes at a spread of Treasuries plus 115 bps.

The specialty chemicals company is based in Midland, Mich.

Wells Fargo improves

Wells Fargo’s 3.3% notes due 2024 (A2/A+/AA-) tightened 2 bps to 96 bps offered, a source said.

Wells Fargo sold $2.25 billion of the notes on Sept. 2 at a spread of Treasuries plus 92 bps.

The bank is based in San Francisco.

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